Hedge Fund Gems: Failures of Beyond Meat, Chipotle, and a portfolio winner
Off-Grid Income financial market deep dive
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In this post, we will be taking a closer look at Beyond Meat's decline, the uncertainty surrounding Chipotle, and a potentially valuable Hedge Fund investment.
We have an exclusive off-market investment opportunity that we believe will be of interest to you.
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Beyond Meat Slaughter
Beyond Meat, Inc. (BYND): Beyond Meat, the plant-based food company, saw a 10% rise in its stock price after reporting a smaller-than-expected loss for the fourth quarter and giving a better-than-expected outlook for the year ahead. This news came as a positive surprise to many.
Beyond Meat's revenue dropped by 21% to $79.9 million, which was still higher than analysts had predicted. The company also reported a net loss of $66.9 million, or $1.05 per share, compared to a loss of $80.4 million, or $1.27 per share, in the same period a year earlier.
BYND, is currently putting more effort into selling their products through Walmart, Kroger, and Costco stores. This shows that the company is reducing in size. To raise money, they are selling some of their equipment used for making and testing food products. Despite these efforts, some investors are still betting against the company's success and believe its stock price will go down, which is known as "shorting."
The rise in prices, which is a component of inflation, has been the main reason for the decline in interest for fake meat.
Consumers are now more concerned with buying affordable necessities due to the high prices, causing less interest in plant-based meats. As a New York Governor candidate once said, "prices are too damn high".
What’s with Chipotle?
Chipotle Mexican Grill Inc. (CMG): During a recent earnings call, the CEO of Chipotle Mexican Grill Inc. (CMG) announced that the company will be increasing its prices again.
This decision came as a result of slow customer traffic in Q3 and Q4 of 2022, with a decline of 1% and 4%, respectively.
It appears that consumers are growing weary of what CMG has to offer and are seeking new options, as evidenced by their spending habits. Some of my hedge fund colleagues have taken a bearish stance on the stock and are currently shorting it or betting that its price will continue to decline rapidly.
A Hedge Fund Gem
As the market experiences some turbulent times, it's wise to consider long-term investment options if you don't have the time to trade stocks.
I have been making more friends in the hedge fund space; these interactions have helped me take my investment ideals to a new level. And I plan on sharing this knowledge with Off-Grid Investors!
After searching the market thoroughly, I've discovered an intriguing investment opportunity that's worth discussing.
So without further ado, let's take a closer look at this promising choice for those seeking a reliable and profitable investment.